The Ministry of Economy prepares the call to import 30,000 tons of chicken meat free of tariffs.
In Mexico, chicken meat is the one most consumed by the population and, in general, constitutes a source of animal protein that provides great benefits to humans.
According to Inegi, the National Consumer Price Index (INPC) for chicken meat, as of November 2021, month by month with respect to 2020, registered the highest increases that have been observed in the country since 1996 and 1997, when the highest increases occurred since the creation of the INPC of chicken meat.
In the past year, the prices of this product rose in January 21.4%, in February 24.9%, in March 21.5%, in April 22.8%, in May 29.5%, in June 18.8%, in July 13.5%, in August 14.3% , in September 9.4%, in October 9.9% and in November 10.1 percent.
The agreement to allow the import quota is now under review in the National Commission for Regulatory Improvement (Conamer).
“It is necessary to complement the source of national and import supply in order to contribute to the stability in the behavior of consumer prices, to the protection of income and purchasing power of Mexican families; likewise, it is necessary to keep available third-country supply options ”, argued the Ministry of Economy.
For this reason, the Ministry of Economy plans to establish a quota to import from the entry into force of the new Agreement and until June 30, 2022, fresh, refrigerated or frozen chicken meat.
The quota includes, among other products, chicken meat without chopping; legs, thighs or legs attached to the thigh; wings and their parts; breast, its pieces and trimmings; breast and breast fillets, their pieces and trimmings.
On June 23, 2021, the Ministry of Economy also authorized a 30,000-ton quota for duty-free access to imports of poultry meat from third-country trade partners until December 31, 2021.
According to estimates from the United States Department of Agriculture, released in August 2021, the relatively small quota did not significantly affect market prices in Mexico.
The government of Mexico has stated that this action is necessary due to food inflation and consequent public concern.
The United States remains Mexico’s main supplier despite granting third-country TRQs for chicken meat in June 2021.
In relative terms, the tariff quota of June 28, 2021 did not offset the impact on the market of another previously reported quota of 355,000 tons from third countries, which Mexico administered from 2013 to 2019.
As Mexican poultry demand recovers and import demand returns, USDA projects that Mexican chicken producers and processors will gain pricing power in the domestic market and increase prices even further.
At the end of each year, the price of whole chicken sold at the San Juan Distribution Center, in the Federal District, from Veracruz, went from 49.8 pesos per kilo in 2020 to 59 pesos per kilo in 2021.
Reference-www.eleconomista.com.mx